Israel-based solar inverter manufacturer SolarEdge reported revenues of $310.5 million in the first quarter (Q1) of 2026, a 41.5% year-over-year (YoY) jump from $219.5 million and beating analysts’ expectations by $5.03 million.

The company expects to achieve break-even operating profit in Q2 2026.

Its revenue was driven by shipments of approximately 50,500 inverters, 2.4 million optimizers, and 331 MWh of batteries for PV applications during the quarter.

Revenue from the U.S. totaled $150 million, representing 48.4% of SolarEdge’s total revenue. Its revenue from Europe totaled $114 million, or 37% of total revenue.

Revenue from international markets totaled $38 million, accounting for 12% of total revenue.

Its net loss contracted by 60.2% YoY to $26.3 million from $66.1 million.

The earnings per share (EPS) loss was $0.43, missing analysts’ expectations by $0.16. The EPS loss in the same period last year was $1.14.

In Q4 2025, SolarEdge’s revenue stood at $335.36 million, up 70.9% YoY from $196.21 million. It posted a 44.5% YoY revenue increase in Q3 2025.

SolarEdge said the U.S. residential market got off to a slow start this year as customers faced changes in tax credit policies and uncertainty around the foreign entity of concern policy. These uncertainties slowed tax-equity funding for third-party operators and strained installer businesses.

The European market also witnessed a slow start in the first two months of the year, but picked up in March. The company recorded higher revenue from the European market since Q4 2023. Revenue growth was driven by stronger battery demand across the region’s residential and C&I sectors.

Shuki Nir, CEO and Director at SolarEdge, said that growth in the European market was driven by high power prices fuelled by the war in the Middle East. He added that the conflict has driven an increase in demand not just for solar solutions but also for solar with storage.

During the quarter, the company launched the second generation of its commercial battery, the CSS outdoor 197 kWh solution, built for medium to large-scale installations. The battery solution can be deployed as a standalone storage asset or paired seamlessly with solar.

It is also investing in AI data center power solutions with its 800-volt DC power rack, which is expected to be a multi-billion-dollar addressable opportunity. The company plans to deliver a working system in 2026 and expects to roll out pilot installations in 2027 and a broader roll-out in 2028.

SolarEdge reported progress on its solid-state transformer platform, which now converts 34.5 kV directly to 800-volt DC with efficiencies exceeding 99%.

The company plans to allocate its capital expenditures to increasing production capacity in the U.S. for both solar and batteries, and to increasing investment in advanced research and development facilities in Israel. It plans to increase investment in its AI data center offering and support ongoing maintenance expenses.

Nir highlighted that more than 90% of its inverter and optimizer manufacturing is done in the U.S. He added that it has established manufacturing facilities in Florida, Austin, Texas, and Salt Lake City.

The company expects the revenue to be within the range of $325 million to $355 million in Q2 2026.